Book VI: Banking and financial institutions

I. – Commitments which may be used for the internal replenishment of a person subject to a resolution procedure may be written down or converted into Tier 1 capital instruments in order to pursue one or other of the following objectives: 1° To recapitalise the person fulfilling the conditions for triggering a resolution procedure in order to restore its ability to comply with the conditions of its authorisation, to continue…

I. – The following commitments may not be written down or converted, regardless of the legal regime applicable to them: 1° Covered deposits defined in application of 2° of article L. 312-16 or covered by an equivalent system; 2° Guaranteed commitments, including guaranteed bonds, and commitments in the form of financial instruments used for hedging purposes which form an integral part of the hedging pool and which are guaranteed in…

When implementing an internal bail-out measure, the collège de résolution shall comply with the provisions of Articles L. 613-55 and L. 613-55-1.

I. – The collège de résolution shall assess, on the basis of a valuation in accordance with Article L. 613-47, the cumulative amount: 1° Where applicable, the amount by which the value of the commitments usable for internal bail-in must be reduced so that the net asset value of the person subject to the resolution procedure is equal to zero ; 2° Where applicable, the amount by which the liabilities…

I. – When it implements an internal bailout measure referred to in I of Article L. 613-55 or a write-down or conversion measure pursuant to the provisions of sub-section 9 of this section, the resolution college shall take one or other of the following measures in respect of the holders of the equity securities referred to in Chapter II of Title I of Book II or other ownership securities: 1°…

I. – Notwithstanding any contractual clause providing for the reduction or conversion of the instruments mentioned in 1°, 2° or 3° below and subject to the exclusions mentioned in I and II of Article L. 613-55-1, the resolution college shall implement a write-down measure as part of the internal bail-in under the following conditions: 1° Tier 1 core capital instruments are written down in accordance with Article L. 613-48-3 ;…

The resolution college shall exercise impairment and conversion powers in respect of a liability arising from a financial contract or derivative within the meaning of Article 2(5) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 only on or after the liquidation of positions relating to such financial contracts or derivatives. Upon commencement of the resolution procedure, the resolution college may terminate…